2025 Australian Car Market Hits 1.2 Million Sales as EV Brands Battle

Australian car fans and buyers drove the market to a massive 1,209,808 new vehicle deliveries in 2025.

The Ford Ranger held its ground as the nation's most popular car, racking up 56,555 annual sales to outpace the Toyota RAV4 and Toyota HiLux.

While total market volumes dipped slightly by 0.9 per cent compared to 2024, the year ended on a high note with 98,744 sales in December - a 3 per cent jump for the month.

The Global EV Shake-up: BYD Dethrone Tesla

The biggest news for enthusiasts was the global electric vehicle showdown where Chinese manufacturer BYD finally knocked Tesla off its throne.

BYD delivered approximately 2.25 million battery-electric vehicles (BEVs) globally in 2025, leaving Tesla’s 1.64 million units in the rearview mirror.

On the local front, Tesla annual sales reached 28,856 units, representing a 24.8 per cent year-on-year decline.

BYD's performance in Australia was notable, selling 25,287 all-electric vehicles, over half of which being the Sealion 7, trailing Tesla by a slim margin.

However, BYD's total Australian volume reached 52,415 units when including their popular plug-in hybrid models.

The BYD Shark 6 emerged as a heavy hitter, becoming their best-selling model locally with 18,073 units sold.

SUVs and Utes Rule the Road

SUVs and light commercial vehicles, like utes, continue to dominate the local landscape, now accounting for a combined 83.3 per cent of all new car sales.

Toyota remained the most popular brand in the country with 239,863 sales, followed by Ford (94,399), Mazda (91,923), Kia (82,105) and Hyundai (77,208).

Chinese-made vehicles made huge inroads, representing 18 per cent of total sales - solidifying China as Australia's third-largest vehicle source behind Japan and Thailand.

This rise is reflected in the strong performance of brands like BYD and Chery, with the Chery Tiggo 4 Pro (20,149) and BYD Shark (18,073) recording significant volumes in their first full years on sale.

Traditional passenger cars continued their long-term slide, with sales of sedans and hatchbacks falling 22.6 per cent as buyers prioritised more versatile designs.

Regional Results and Market Highlights

Regional performance was mixed across the states and territories throughout the year.

Western Australia and the Northern Territory were the only regions to record growth, with the West ticking up by 1.0 per cent.

The Australian Capital Territory saw the largest decline at 3.8 per cent, while New South Wales and Victoria remained the highest-volume markets despite small dips.

With over 1.2 million vehicles sold, the 2025 result represents a resilient year for the Australian market as buyer preferences continue to evolve.